JANUARY 2019 FEAST OR FAMINE FOR NORTH SEA AHTS OWNERS AS RATES FLUCTUATE

JANUARY 2019 FEAST OR FAMINE FOR NORTH SEA AHTS OWNERS AS RATES FLUCTUATE

CONTENTS 3 OSV MARKET ROUND-UP 6 OSV AVAILABILITY, RATES & UTILISATION - NORTH SEA 7 MONTHLY OSV SPOT RATES - NORTH SEA 8 FEATURE VESSEL 9 OSV NEWBUILDINGS, CONVERSIONS, SALE & PURCHASE 11 SUBSEA 14 RENEWABLES 15 RIGS 16 CONUNDRUM CORNER & DUTY PHONES ABOUT SEABROKERS GROUP The Seabrokers Group was established in 1982. We provide a unique and varied range of services to clients. The Seabrokers Group has an experienced workforce within Shipbroking, Real Estate, Facilities Management, Construction, Sea Surveillance, Harbour Cranes and Safe Lifting Operations. Our head office is located in Stavanger, but we also have offices in Aberdeen, Bergen and Rio de Janeiro. The Seabrokers Group is different and we are proud of this fact. Our information, experience and knowledge provide us with the ability to perform in our diverse business areas. Seabrokers Chartering AS and Seabrokers Ltd are certified by DNV GL in line with Management System Standard ISO 9001:2015. SHIPBROKING REAL ESTATE Production and Administration: Seabrokers Ltd, Aberdeen For your free copy of Seabreeze, email: chartering@seabrokers.co.uk The Seabreeze Monthly Market Report is distributed worldwide through our offices in Aberdeen, Stavanger and Rio de Janeiro. Seabrokers Group 2019 SECURALIFT SEA SURVEILLANCE YACHTING OUR OFFICES: STAVANGER BERGEN SKIEN ABERDEEN RIO DE JANEIRO www.seabrokers-group.com FACILITY MANAGEMENT FOUNDATIONS HARBOUR CRANES

OSV MARKET ROUND-UP FEAST OR FAMINE FOR AHTS OWNERS While 2018 proved to be a huge disappointment for the majority of North Sea AHTS owners, the first few weeks of 2019 have already seen the first rate spike of the year. Six rig move requirements materialised in the first two or three weeks of January, and while that may not sound like a huge amount of work, there is a limited pool of vessels trading the spot market due to the length of the layup list. This means that spot vessel supply can tighten substantially in a relatively short period of time, especially if inclement weather forces delays to rig move schedules. This meant that spot AHTS rates rose from less than GBP 10,000 (NOK 110,000) at the start of January to more than GBP 65,000 (NOK 720,000) within the space of a fortnight. To put this into context, there were only three AHTS charters through all of 2018 that were recorded at higher rates than the peak January fixtures. That may give owners some optimism that this year may bring them better fortunes. However, it really was feast or famine in January; a week after those peak fixtures, the market was back in charterers favour and rates were back below GBP 10,000 (NOK 110,000) again. RECORD RESPONSE TO NORWAY LICENSING The Norwegian Petroleum Directorate has received a record response to its latest licensing round. Thirty-three companies have been offered ownership interests in 83 production licences on the Norwegian Shelf as a result of the Awards in Predefined Areas (APA) 2018 process. This is the largest number ever awarded in a single Norwegian licensing round. Of the 33 successful companies, 21 have been offered operatorship of at least one licence. GIANT GAS DISCOVERY FOR CNOOC UK CNOOC Petroleum Europe Ltd has made a hugely significant gas and condensate discovery at its Glengorm prospect in the UK Central North Sea. Glengorm is located in Licence P2215, where CNOOC is the operator with a 50% stake in partnership with Total and Edison (25% each). If early indications prove to be accurate then this could turn out to be the largest discovery on the UK Continental Shelf in more than a decade. Partner Total has indicated that recoverable resources from the discovery are estimated at close to 250 million barrels of oil equivalent. Further drilling and testing will be carried out to appraise the The 83 awarded licences consist of 37 in the North Sea, 32 in the Norwegian Sea and 14 in the Barents Sea. The list of companies awarded operating stakes in licences consists of: Aker BP (11 licences), ConocoPhillips (3), DEA (3), DNO (5), Edison (2), Equinor (13), Faroe Petroleum (4), INEOS (2), Lundin (9), Neptune Energy (4), Norske Shell (2), OKEA (3), OMV (6), Petrolia NOCO (1), PGNiG (2), Repsol (2), Spirit Energy (2), Suncor (2), Total (1), Vår Energi (4) and Wintershall (2). resources and productivity of the reservoir. For Total, this follows in quick succession from its significant Glendronach discovery in UK waters west of Shetland. Glendronach was discovered in September 2018. The Glengorm well was drilled in Licence P2215 with Borr Drilling jackup Prospector 5. The well was drilled to a total depth of 5,056m (16,588ft) in water depths of around 80m (262ft). The well encountered net gas and condensate pay zones with a total thickness of 37.6m (123ft). As a further bonus, Glengorm is located in close vicinity to existing infrastructure to offer tie-back development options. SEABREEZE 3

OSV MARKET ROUND-UP THREE-YEAR EXTENSIONS FOR REMØY TRIO Remøy Shipping has received three-year contract extensions from Equinor for all three of its owned PSVs. Rem Hrist The Rem Eir, Rem Hrist and Rem Mist will proceed onto their new contract periods in direct continuation of their current charters with Equinor. The vessels are now firmly contracted until March 2022 (Rem Hrist) and May 2022 (Rem Eir and Rem Mist). As part of the contracts, all three vessels will be retrofitted for hybrid battery operations. The Rem Eir is a 2014-built VS 4412 DF vessel, while the Rem Hrist and Rem Mist, both delivered in 2011, were built to the Ulstein PX 105 design. The Rem Eir has a length of 92.5m and deck area of 1,090m², while the Hrist and Mist have a length of 88.8m and deck area of 916m². In addition to the Rem Eir, Hrist and Mist, Remøy Shipping is also the owner of one seismic vessel and one coastguard vessel, while also managing a wider fleet of externally owned vessels. EQUINOR EXTENDS ESVAGT CONTRACTS Esvagt Bergen North Star Shipping and Vestland Offshore have both picked up new one-year contracts for their PSVs to work in the UK sector. Hurricane Energy has chartered North Star PSV Grampian Sovereign for a firm period of one year with two one-year options. It has not just been the PSV market where Equinor has been awarding long-term contract extensions. In the ERRV market, Esvagt has also received threeyear extensions for the Esvagt Bergen and Esvagt Stavanger, committing both vessels until TERM DEALS FOR NORTH STAR & VESTLAND The vessel will be supporting Hurricane s operations with the Aoka Mizu FPSO west of Shetland. Meanwhile, EnQuest has awarded an equivalent contract to incumbent PSV Vestland Artemis, firmly committing her until at least January 2020. 2022. The vessels will continue providing emergency response cover in the southern part of the Norwegian sector. The Esvagt Bergen and Esvagt Stavanger have been working continuously for Equinor since their deliveries in 2011 and 2012 respectively. Grampian Sovereign (pictured c/o D. Dodds) 4 SEABREEZE

OSV MARKET ROUND-UP FLURRY OF FIXTURES FOR SNS POOL The turn of the year has led to a flurry of fixture activity, with no fewer than eight PSVs (mainly incumbents) awarded new term contracts with Peterson and the Southern North Sea (SNS) Pool. Skandi Captain (pictured c/o P. Gowen) DOF has been awarded one-year firm contracts for the Skandi Captain and Skandi Texel. The Captain will proceed to her new contract in direct continuation of her current charter, while the Skandi Texel is being reactivated from layup to commence her contract in the second quarter of 2019. The Texel has been in layup since the third quarter of 2016. Similar one-year firm contracts were awarded to three other vessel owners in relation to incumbent units. The contract renewals were awarded to Island Offshore for the Island Empress and Endeavour, Myklebusthaug for the Dina Merkur and Dina Scout, and Vroon Offshore for the Pool Express and VOS Base. All eight vessels are contracted until at least the first quarter of 2020. TWO-YEAR TERMS FOR TIDEWATER & DOF North Promise (pictured c/o J. Plug) Maersk Supply Service has been awarded a contract with Chevron Australia for two of its Starfish AHTS vessels to support Chevron s Gorgon Stage Two drilling programme. The Maersk Mariner and Maersk Master will provide towing, Tidewater and DOF have both been awarded multi-year PSV contracts with a major oil & gas company for work in the UK sector of the North Sea. Tidewater PSV North Promise and DOF PSV Skandi Gamma have been fixed for a firm period MAERSK SUPPLY SUPPORTING CHEVRON anchor handling, supply and WROV services from the second quarter of 2019. Chevron has contracted Transocean semi GSF Development Driller I for an 11-well plus options contract with an estimated duration of approximately 955 days. of two years with two further one-year options. The vessels are firmly committed until at least the first quarter of 2021. The North Promise is a 2007-built Aker (Vard) PSV 09 DE vessel, while the Skandi Gamma is a 2011-built STX (Vard) PSV 06 LNG vessel. Maersk Master (pictured c/o J. Bartels) SEABREEZE 5

OSV RATES & UTILISATION JANUARY 2019 - DAILY NORTH SEA OSV AVAILABILITY 26 24 22 20 18 16 14 12 10 8 6 4 2 0 RATES & UTILISATION PSV 2019 PSV 2018 AHTS 2019 AHTS 2018 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 NORTH SEA SPOT AVERAGE UTILISATION JANUARY 2019 TYPE JAN 2019 DEC 2018 NOV 2018 OCT 2018 SEP 2018 AUG 2018 MED PSV 62% 72% 59% 64% 77% 60% LARGE PSV 58% 65% 67% 83% 81% 75% MED AHTS 34% 31% 35% 52% 59% 59% LARGE AHTS 61% 47% 50% 58% 66% 77% NORTH SEA AVERAGE RATES JANUARY 2019 CATEGORY AVERAGE RATE JAN 2019 AVERAGE RATE JAN 2018 % CHANGE MINIMUM MAXIMUM SUPPLY DUTIES PSVS < 900M 2 5,299 4,996 +6.06% 3,750 8,000 SUPPLY DUTIES PSVS > 900M 2 5,280 5,959-11.39% 3,378 9,500 AHTS DUTIES AHTS < 22,000 BHP 29,893 5,481 +445.39% 6,960 67,500 AHTS DUTIES AHTS > 22,000 BHP 16,134 8,736 +84.68% 5,404 38,288 SPOT MARKET ARRIVALS & DEPARTURES MID-DEC 2018 TO JAN 2019 ARRIVALS - NORTH SEA SPOT UNION LYNX EX BALTIC SEA UNION MANTA EX BALTIC SEA UNION PRINCESS EX BALTIC SEA OLYMPIC ZEUS WEST AFRICA DEPARTURES - NORTH SEA SPOT BOURBON SAPPHIRE MEDITERRANEAN FAR SOLITAIRE BALTIC SEA MAERSK MINDER WEST AFRICA PACIFIC DOLPHIN WEST AFRICA DEPARTURES CONTINUED SAEBORG MEDITERRANEAN SOVEREIGN AMERICAS VIKING QUEEN MEDITERRANEAN * Vessels arriving in or departing from the North Sea term/layup market are not included here. 6 SEABREEZE

NORTH SEA AVERAGE SPOT RATES 40,000 10,000 30,000 7,500 PSVs All < 900m² Cargo Runs 20,000 5,000 10,000 2,500 - Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2018 4,996 5,844 5,968 8,333 7,589 7,631 8,275 5,692 8,396 8,441 5,594 5,493 2019 5,299 - - - - - - - - - - - 15,000 12,500 10,000 10,000 7,500 PSVs PSVs > 900m² < 900M² 900M2 5,000 5,000 2,500 - Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2018 5,959 5,627 5,737 7,856 8,400 7,585 9,360 8,550 9,104 10,152 6,004 6,143 2019 5,280 - - - - - - - - - - - 40,000 35,000 AHTS < 22,000 bhp 30,000 PSVs > 900M² 900M2 30,000 25,000 20,000 20,000 15,000 10,000 10,000 5,000 - Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2018 5,481 6,643 20,748 25,958 8,733 9,875 12,303 17,593 9,717 12,552 6,100 12,172 2019 29,893 - - - - - - - - - - - 40,000 35,000 30,000 AHTS > 22,000 Rig Moves bhp 30,000 25,000 20,000 20,000 15,000 10,000 5,000 - Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2018 8,736 9,410 14,003 32,322 12,843 16,931 14,112 24,324 14,048 12,555 9,567 12,516 2019 16,134 - - - - - - - - - - - 20,000 35,000 30,000 Average Day Rates Average To Month Day Rates (January To Month 2019) (June 2013) 15,000 25,000 20,000 10,000 15,000 10,000 5,000 5,000 - PSVs < 900m² PSVs > 900m² AHTS < 22,000 bhp AHTS > 22,000 bhp 2018 6,662 4,996 6,783 5,959 11,893 5,481 15,608 8,736 2019 5,299-5,280-29,893-16,134 - SEABREEZE 7

FEATURE VESSEL BOKA FALCON Boskalis has agreed to charter the 2011-built IMR support vessel Lewek Falcon from DA Wang Limited on a long-term bareboat deal. She has been renamed as the Boka Falcon. The contract includes an option for Boskalis to acquire the 93.4m vessel. The Boka Falcon is equipped with a 150-tonne active-heave compensated crane and two Triton XLX 150hp heavy work-class ROVs, and she has an accommodation capacity for 100 persons. The Boka Falcon is currently in Rotterdam undergoing maintenance and repair work for a period of six weeks; she is expected to be available for charter from early March. The vessel has a deadweight of 5,033 tonnes, with a deck area of 815m² deck and a bollard pull of 403 tonnes. The Boka Falcon was previously owned by Lewek Falcon Shipping Pte, which filed a voluntary petition for Chapter 11 in the United States in March 2017, along with parent company Emas Chiyoda Subsea. BOKA Falcon specs: Build Yard: Drydock World Build Year: 2011 LOA: 93.4m Breadth: 22.0m Design Draft: 6.5m Deck Area: 815m² Deadweight: 5,033t Helideck: Sikorsky S-92 Subsea Crane: 150t AHC Accommodation: 100 persons 8 SEABREEZE

OSV NEWBUILDINGS, S&P SEACOR BUYS THREE MORE UT 771 PSVS... Having previously set up a Joint Venture (SEACOSCO) with the COSCO Shipping Group for the ownership of eight newbuild PSVs, SEACOR Marine has followed this up with the acquisition of three newbuild PSVs from the COSCO Zhoushan Shipyard for its exclusive... AND EXPANDS BRAZIL PRESENCE UP Agate (pictured c/o D. Dodds) ownership. The vessels have been built to the Rolls Royce UT 771 CDL design, the same as the SEACOSCO Ohio and Yangtze. The three new vessels, to be named SEACOR Alps, Andes and Atlas, are scheduled for delivery in September 2019, January 2020 and April 2020. In another stage of its fleet expansion, Seacor Marine has also strengthened its presence in Brazil through the formation of a new joint venture that was set up to acquire UP Offshore. The JV company is owned 49% by Seacor and 51% by Proyectos Globales de Energía y Servicios LATC NEWBUILD ARRIVES IN NIGERIA LATC Marine has welcomed a new PSV to its fleet in Nigeria following the vessel s arrival from Romania. Named Dearest Miss Petté, the vessel was built to the Daman PSV 3300 design at Damen s Galati Shipyard in Romania. She is a sister vessel to the Lahama, DEER ISLAND DELIVERED which was also constructed at Damen Galati. Dearest Miss Petté has a length of 80m, breadth of 16.2m and a deck area of 728m². She has a maximum deadweight of 3,500 tonnes with an accommodation capacity for 16 crew with 6 passengers. Edison Chouest Offshore has added another newbuild PSV to its Jones Act US Gulf fleet following the completion of construction at the owner s Gulf Ship facility in Gulfport, Mississippi. The Deer Island was built to the NA312E CD VE (Very Efficient) The total purchase price for the three vessels will be around USD 46 million. They were originally ordered as part of a four-psv deal for the East Sunrise Group (now Sunrise Offshore), but only one unit was delivered to Sunrise. CME, S.A. de C.V. The equity of UP Offshore was acquired for a nominal consideration, with the debt refinanced with approximately USD 95 million of new indebtedness. UP Offshore operates a fleet of 14 vessels, 12 of which are located in Brazil and trading under the Brazilian flag. Dearest Miss Petté (pictured c/o P. Ionescu) design. She features a hull form that was designed to maximise deadweight while significantly reducing hydrodynamic resistance, thereby improving fuel efficiency. The vessel has a length of 95m, a breadth of 20m and a deadweight of more than 6,000t. SEABREEZE 9

OSV NEWBUILDINGS, S&P SENTINEL ORDERS ERRV TRIO Malin Sentinel Sentinel Marine has placed an order for three newbuild ERRVs to be built in China for GBP 36 million (USD 47.1 million). The vessels, to be named Cromarty Sentinel, Trafalgar Sentinel and Viking Sentinel, are scheduled to enter service in 2020. The DP2 ANOTHER TOISA PSV SOLD AT AUCTION Another former Toisa PSV has been sold at bankruptcy auction in the USA. A long list of vessels have been sold in recent months, with the latest auction seeing PSV Toisa Independent snapped up by A1 Offshore for a price of USD 1.85 million. The Toisa Independent is based in Greece but she has not worked for several years. The vessel has a length of 83.2m, breadth of 19m, deadweight of 4,427 tonnes and a deck area of 1,000m². ERRVs will have FiFi 1 and oil recovery equipment, along with liquid mud and dry bulk storage. Back in 2015, Sentinel placed an order for nine new ships to be built, with the final unit in that series (Malinel Sentinel) due to be delivered in April. Toisa Independent (pictured c/o D. Sands) SIEM SELLS THREE Siem Offshore has entered into an agrement to sell three VS 470 Mk II PSVs to an undisclosed buyer. The Siem Louisa, Siem Sasha (pictured c/o P. Gowen) and Sophie Siem, built in 2005-2006, are scheduled to be delivered to their new owners later this quarter. The three vessels are currently providing support for TPAO for its drilling campaign with jackup Rowan Norway offshore Turkey. MAERSK ASSISTER SOLD TO JD CONTRACTORS Maersk Supply Service recently sold AHTS vessel Maersk Assister, with JD Contractors emerging as the new buyer. Prior to the sale, the Maersk Assister had been laid up in Denmark since 2015. The 2000-built vessel has been renamed as the Assister. She has a length of 90.3m, breadth of 23m and a maximum deadweight of more than 5,000t. With an engine output of more than 23,000 bhp, she has a bollard pull of circa 280t. Maersk Assister (pictured c/o J. Zaal) RECENT DELIVERIES OF NEWBUILD OSVS NAME TYPE/DESIGN OWNER/ MANAGER COMMITMENT DEAREST MISS PETTÉ DAMEN PSV 3300 LATC MARINE TBC DEER ISLAND NA312E CD VE PSV EDISON CHOUEST OFFSHORE US GULF 10 SEABREEZE

SUBSEA SUBSEA MARKET ROUND-UP Saudi Aramco has been busy in recent weeks awarding contracts for the Berri and Marjan offshore fields in Saudi Arabia, as well as awarding a multi-year LTA (long-term agreement). TechnipFMC, in consortium with Malaysia Marine and Heavy Engineering, was awarded a sixyear offshore agreement covering the engineering, procurement, fabrication, transportation and installation of offshore facilities for the development of Saudi Aramco s offshore projects. The LTA also includes options for an additional six years and allows the consortium partners to bid for Saudi Aramco s offshore oil and gas tenders. This follows a similar deal awarded to Sapura Energy and a consortium of Lamprell and Boskalis in November 2018. Saudi Aramco already has LTA programmes in place with other contractors including McDermott, Saipem, NPCC, LTHE (with its consortium partner Subsea 7) and Dynamic Industries. Under the LTA agreement with Saipem, the contractor has been awarded two engineering, procurement, installation and construction contracts worth USD 1.3 billion. Under the deal, Saipem will design and provide EPCI for subsea systems, in addition to the laying of pipelines, subsea cables and umbilicals, platform decks and jackets on the Berri and Marjan fields offshore Saudi Arabia. Saipem s LTA with Saudi Aramco is firm until 2021. The operator has also awarded the consortium between L&T Hydrocarbon Engineering, a subsidiary of Larsen & Toubro, and Subsea 7 an EPCI contract for work on the Berri pipelines project. The contract covers three oil production deck manifolds and subsea pipelines in the Zuluf and Berri fields. This is the fifth award Saudi Aramco has awarded to the consortium. BP GREEN LIGHTS FIRST PHASE OF GREATER TORTUE AHMEYIM BP and its partners have approved the Final Investment Decision (FID) for Phase 1 of the cross-border Greater Tortue Ahmeyim development in the C-8 block off the coast of Mauritania and the Saint-Louis Profond block offshore Senegal. Project execution activities are expected to start during the first quarter of 2019, with first gas for the West African project expected to be produced in the first half of 2022. BILLION DOLLAR ZOHR CONTRACT FOR SAIPEM Saipem has been granted an additional USD 1.2 billion EPCI contract with Petrobel for the Ramp Up to Plateau phase at the Zohr project offshore Egypt. This scope covers the installation of a second 30-inch diameter gas export pipeline, infield clad lines, umbilicals and electrical/fibre optic cable, as well as EPCI work for the field development of 10 wells. In this new phase of work, Saipem will deploy a range of pipelay vessels including the Castorone, the FDS, the S7000, the Castoro Sei, the OCV Normand Maximus, heavy lift vessel Saipem 3000 and the multipurpose Normand Cutter and Far Samson vessels. Operations at the Ramp Up to Plateau phase began in January 2019 and this follows on from the Optimised Ramp Up phase. To remind, Saipem and Petrobel finalised offshore contract variations worth USD 900 million for EPCI activities in relation to the Optimised Ramp Up phase of the giant Zohr development project in July 2017. SEABREEZE 11

SUBSEA PERENCO DECOM PLAN APPROVED The UK authorities have approved Perenco s decommissioning plans for the Tyne and Guinevere gas field installations in the Southern North Sea. Perenco submitted its plans in July 2018, having ceased production from the Tyne field in November 2015 and the SUBSEA COMPRESSION FOR ORMEN LANGE Shell has decided to use a subsea compression concept for the third phase of its Ormen Lange field development. SOLSTAD CHARTERS OUT DUO DeepOcean has chartered Solstad Offshore OCV Normand Jarstein for the 2019 summer season, commencing in March, with further options for 2020 and 2021. DeepOcean will mobilise two work-class ROVs onboard and will utilise the vessel for projects Shell, with its partners Equinor, Petoro, ExxonMobil and Ineos, will now decide between two remaining options for subsea compression: one for wet gas developed by OneSubsea and built on technology installed on the Gullfaks field, and a wet gas-tolerant system from TechnipFMC which is based on within both the oil & gas and renewables markets. Additionally, Rever Offshore (formally Bibby Offshore) have taken up the 2019 option on the VS 4125-designed Normand Clipper. Rever Offshore will utilise the vessel in the North Sea for a minimum of 120 days and ØSTENSJØ RENAMES IMR VESSEL Østensjø Rederi has renamed its IMR support vessel Sun Enabler to Edda Sun, prior to the vessel commencing a long-term contract with Fugro in March. Fugro has chartered the ST 253-designed vessel for two years plus options. The 2009-built Guinevere field in May 2017. The platform topsides on the Tyne field will be removed and transported to shore for re-use, recycling and/or disposal, while the jacket and subsea template will be removed to shore for cleaning and disposal. The decommissioning programme for Guinevere includes well plugging & abandonment and the removal of the platform and jacket. experiences from the Åsgard field. Both of these options will need power from land. The cost for subsea compression on the field has reduced by more than 50% compared to the first time offshore compression for Ormen Lange was considered. The project was stopped in 2014 to reassess all opportunities. the contract will start between March 15th and April 15th. Normand Jarstein (pictured c/o O. Halland) vessel, which was built at the Batbygg shipyard in Norway, was previously named the Acergy Merlin, GSP Prince and Seabed Prince. The vessel has accommodation for 72 persons, with two work-class ROVs and 625m² of free deck area. 12 SEABREEZE

SUBSEA PALADIN FINDS A NEW HOME... AGAIN Further to a report in a previous edition of Seabreeze, the bankruptcy courts have now accepted a higher offer for the sale of the former Toisa-owned DSV Toisa Paladin. James Fisher offered a higher price of USD 20.35 million and the vessel will be utilised by Subtech in the Middle East. The court had earlier accepted ANG s offer of USD 18.5 million. Meanwhile, Subsea 7 has also increased its offer for the DSV Toisa Pegasus from USD 34.3 million to USD 38.95 million. Subsea 7 will utilise the 2009-built DSV, which will be renamed Seven Pegasus, to support its operations in the North Sea and Asia Pacific markets. The vessel will undergo a dry docking and crew familiarisation programme before commencing THREE-YEAR DEAL FOR BOKA CONSTRUCTOR Boskalis has won a USD 40 million three-year subsea services contract in the Middle East with an undisclosed client. It is understood that the contract is with Dubai Petroleum but this has not yet been confirmed. Under the agreement, Boskalis will carry out a broad spectrum of subsea IRM services including integrity assessments for offshore platforms and tripods, operations during the second quarter of 2019. wellhead jacket inspections, integrity assessments and inspections of pipelines, and light ad-hoc construction work. The 2010-built vessel BOKA Constructor will be used for the campaign and she will be outfitted with air-diving/rov teams and options for saturation diving. FAR SLEIPNER TO REMAIN WITH TOTAL Solstad Offshore, through its local partner Petro Services, has been awarded a two-year firm plus four six-month options contract with Total for its Vard 3 07-designed OCV Far Sleipner. The 143m vessel, which is equipped with a 250t crane and accommodation for 130 persons, will undertake IRM, SURF, subsea intervention and drilling support work at Total s assets offshore the Republic of Congo. The vessel has been chartered by the same client in Congo since January 2017. PICASSO HEADS TO WEST AFRICA Ultra Deep Solutions MT 6024-designed diving support and construction vessel Picasso has departed Sharjah in the UAE and is now en route to West Africa. Upon arrival, the 121m vessel, which is equipped with an 18-man twin bell saturation system, a 140t offshore crane and 1,300m² of deck area, will commence a long-term subsea campaign for an undisclosed client. Prior to its departure, the vessel had been operating on Dubai Petroleum s Rashid D project in the Middle East. SEABREEZE 13

RENEWABLES SEVEN MONTH CHARTER FOR TOPAZ TANGAROA Topaz Energy and Marine has fixed the second of its two IMR newbuildings into the renewables market. ESVAGT TAKES UP OPTION FOR SOV Esvagt is to proceed with an option for a third newbuild SOV vessel, after MHI Vestas agreed to utilise it on the Moray East offshore wind farm from 2021. Esvagt has now placed an order with Havyard, which will design and build the new vessel for delivery in February 2021. The 831 The 98.1m Topaz Tangaroa, which is equipped with a 120t AHC crane, 1,000m² of free deck and accommodation for 82 persons, will commence the seven-month campaign in February. The undisclosed European contractor, understood to be Van Oord, will also have options to extend the contract duration L-designed newbuild will have a length of 70m and accommodation for up to 60 persons, with a walk-to-work gangway installed. The newbuild will bring the number of Esvagt vessels on contract to MHI Vestas to five in 2021. MHI Vestas will deliver 100 of ZARATAN MOBILISING TO TAIWAN The Seajacks Zaratan has begun its mobilisation to Taiwan to begin the installation of 20 Siemens Gamesa SWT-6.0-154 wind turbines on the 120MW Formosa 1 Phase 2 offshore wind farm. The jackup will begin installation work during the second until late 2020. The Vard Brattvag yard in Norway has delivered the sister vessel, Topaz Tiamat, to Topaz Marine on January 17th. As previously reported, Reach Subsea and MMT have chartered the newbuild for two-and-a-half years, with three yearly options thereafter. its V164-9.5 MW offshore wind turbines for the 950MW project. quarter of 2019 in water depths between 15 and 30 metres. Once fully built in the second half of 2019 and fully operational in 2020, Formosa 1 will have a capacity of 128MW. During the first phase of the wind farm, two 4MW Siemens Gamesa wind turbines were installed. CONSTRUCTION BEGINS ON CHINESE WIND FARMS China Guangdong Nuclear Power Group (CGN) has started constructing two offshore wind farms off the eastern coast of the Guangdong Province, which will have a total installed capacity of 900MW. CGN started building a control centre for the 500MW Houhu and 400MW Huizhou offshore wind farms in December 2018. The Houhu project is due to be commissioned by the end of 2021, while the Huizhou offshore wind farm is expected to be put into operation in mid-2022. CGN states that this is its first batch of offshore wind projects in eastern Guangdong. 14 SEABREEZE

RIGS OIL PRICE VS RIG UTILISATION 100% 90% $78.86 $80.47 $76.65 $75.19 80% $74.44 72.9% $71.63 $73.13 71.7% 71.1% 73.0% 71.9% 72.7% 70.1% 68.8% 69.2% 67.4% 68.9% 70.0% 67.6% 70% $68.99 $65.42 $66.45 72.6% 65.6% 68.6% 69.1% 67.9% 66.9% 60% 65.8% 64.7% 65.6% $60.20 $65.17 58.4% 59.5% 60.7% 61.9% $56.46 50% 40% 30% 20% 34.7% DEEPSEA NORDKAPP DELIVERED Odfjell Drilling has accepted delivery of its newbuild semisubmersible rig Deepsea Nordkapp from the Samsung Heavy Industries Shipyard in South Korea. An enhanced Moss Maritime CS-60 designed South Korean shipbuilder Daewoo Shipbuilding & Marine Engineering has resolved a dispute with Sonangol relating to the delivery and payment for two newbuild drillships. The rigs were originally ordered by RIG UTILISATION AND DAY RATES UTILISATION 38.7% 42.3% 40.6% 42.1% 43.3% 45.1% 48.0% 47.2% 45.0% 48.1% 47.9% 45.9% Jan 18 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sep 18 Oct 18 Nov 18 Dec 18 Jan 19 Average Brent Crude US$ / Bbl South America Rig Utilisation JAN 2019 JAN 2018 Northwest Europe Rig Utilisation US Gulf Rig Utilisation rig, the Nordkapp will now be mobilised to Norway where she has been chartered by Aker BP for a two-year firm contract. The rig was acquired by Odfjell Drilling in April 2018 for a price of USD 505 million. DAEWOO RESOLVES SONANGOL DISPUTE Sonangol in 2013 for delivery in 2016 but the deal was placed in jeopardy due to the industry downturn. The new resolution will see both drillships delivered in the first quarter of this year for a price of USD 530 million. JAN 2017 JAN 2016 JAN 2015 NORTHWEST EUROPE 72.6% 58.4% 52.3% 74.2% 94.9% SOUTH AMERICA 72.7% 72.9% 74.4% 83.2% 91.3% US GULF 45.9% 34.7% 31.8% 42.2% 57.6% RECENT DAY RATE BENCHMARKS LOW (USD) HIGH (USD) UK HARSH HIGH SPEC JACKUPS 85,000 87,500 NORWAY HARSH HIGH SPEC JACKUPS 145,000 275,000 UK HARSH STANDARD SEMISUBS 100,000 130,000 NORWAY HARSH STANDARD SEMISUBS 180,000 180,000 GLOBAL ULTRA-DEEPWATER SEMISUBS 130,000 200,000 GLOBAL ULTRA-DEEPWATER DRILLSHIPS 150,000 455,000 $85 $80 $75 $70 $65 $60 $55 $50 $45 $40 $35 $30 INACTIVE RIGS NORTHWEST EUROPE NAME TYPE STATUS BAUG JU COLD STACK BIDEFORD DOLPHIN SS WARM STACK BLACKFORD DOLPHIN SS WARM STACK BORGLAND DOLPHIN SS WARM STACK BYFORD DOLPHIN SS WARM STACK COSLINNOVATOR SS WARM STACK COSLPIONEER SS HOT STACK COSLPROSPECTOR SS WARM STACK EIR JU COLD STACK ENSCO 70 JU COLD STACK ENSCO 71 JU COLD STACK ENSCO 100 JU WARM STACK ISLAND INNOVATOR SS WARM STACK MAERSK GALLANT JU WARM STACK MAERSK GIANT JU COLD STACK MAERSK RESILIENT JU WARM STACK OCEAN GUARDIAN SS WARM STACK POLAR PIONEER SS COLD STACK SCARABEO 5 SS COLD STACK SEDCO 711 SS COLD STACK SEDCO 714 SS COLD STACK SERTAO DS COLD STACK SONGA DEE SS COLD STACK SWIFT 10 JU WARM STACK WEST ALPHA SS COLD STACK WEST EPSILON JU COLD STACK WEST NAVIGATOR DS COLD STACK WEST VENTURE SS COLD STACK WILHUNTER SS COLD STACK Source: IHS-Petrodata SEABREEZE 15

CONUNDRUM CORNER, DUTY PHONES USD 830 MILLION RIG CONTRACT Transocean Ltd has signed a rig design and construction management contract, as well as a five-year drilling contract, with Chevron USA, Inc for one of its two ultra-deepwater drillships that are currently under construction at the Jurong Shipyard in Singapore. The rig will be the first ultra-deepwater floater rated for 20,000 psi operations, resulting in a contract value that is much higher than recent market benchmarks. The contract comes with an estimated backlog for Transocean of USD 830 million, excluding mobilisation and reimbursables. This would equate to a day rate of circa USD 455,000. The newbuild drillship is scheduled to commence operations for Chevron in the US Gulf of Mexico in the second half of 2021. CONUNDRUM CORNER Last month s answer :- A fire engine travels six miles to an out of control bonfire. It travels at a speed of 32 mph. The fire engine s water tank holds 500 gallons but has been leaking through the journey at a rate of 20 gallons per hour. If the fire engine needs 496 gallons of water to put out the fire, will it have enough, and if so, how much water will it have to spare? The correct answer was :- 0.25 gallons spare This month, our poser is as follows: Rita has worked as a nurse, a guide, a tutor and a coach. Who has worked as a comic, a guard, a carer and a baker? Answers back to chartering@seabrokers.co.uk. THE SEABREEZE ARCHIVE For the current or archive copies of Seabreeze go to: http://www.seabrokers.co.uk/ - see under Shipbroking / Market Reports. If you wish to Subscribe or Unsubscribe please contact: chartering@seabrokers.co.uk SEABROKERS GROUP CONTACTS SEABROKERS HEAD OFFICE Forusbeen 78-4033 Stavanger - Norway Tel: (+47) 51 80 00 00 Internet: www.seabrokers-group.com SEABROKERS CHARTERING AS - STAVANGER Duty Telephone ++47 51 815400 (24 Hrs) E-mail chartering@seabrokers.no SEABROKERS LTD - ABERDEEN Duty Telephone ++44 1224 747744 (24 Hrs) Duty Mobile ++44 7802 304129 E-Mail chartering@seabrokers.co.uk SEABROKERS BRAZIL LTDA - RIO DE JANEIRO Duty Telephone ++55 21 3505 4200 (24 Hrs) E-mail chartering@seabrokers.com.br SECURALIFT AS - STAVANGER Telephone ++47 51 800000 E-mail stig@seabrokers.no SEA SURVEILLANCE AS - BERGEN Telephone ++47 55 136500 info@seasurv.net HEADING E-mail SEABROKERS EIENDOM AS - STAVANGER Quiatis imaximilitem num enis porum ne dolles Telephone ++47 51 800000 qui E-mail rerum id min frode.albretsen@seabrokers.no corepta dolo quo conet il id quisto que voluptatus eatis re ventur? Hilibust quis SEABROKERS as mincias SERVICES peribustis AS - qui STAVANGER dolorit officatus aut Telephone preiumquas qui ++47 iuscimu 51 800000 sapelest, esto odio. E-mail eli@seabrokers.no Itatecum cus acerum ipidunture corporpores et int faccum SEABROKERS remperi FUNDAMENTERING onsequi AS - STAVANGER Telephone ++47 51 800000 E-mail fundamentering@seabrokers.no SEABROKERS HAVNEKRANER AS - STAVANGER Telephone ++47 51 800000 E-mail havnekraner@seabrokers.no 16 SEABREEZE